TISCO Financial Group Public Co., Ltd. · 102,695 100,586 105,124 13.7% 13.0% 13.1% 2013 1Q14 2Q14...

TISCO Financial Group Public Co., Ltd.

Analyst Meeting 2Q/2014

July 15, 2014

2Q/2014 Financial Results

3

Consolidated Income Statements

Remark: * Net of income and expense from business promotion relating to HP business

Unit: Million Baht 2Q13 1Q14 2Q14 %QoQ %YoY 1H13 1H14 %YoY

Interest income 4,766 4,998 4,858 (2.8) 1.9 9,233 9,856 6.7

Interest expense (2,537) (2,692) (2,435) (9.6) (4.0) (4,901) (5,127) 4.6

Net interest income 2,229 2,306 2,423 5.1 8.7 4,332 4,729 9.2

Fee and service income 1,268 1,284 1,294 0.8 2.0 2,907 2,578 (11.3)

Fee and service expenses (59) (48) (48) (1.4) (18.5) (125) (96) (22.9)

Other operating income * 246 134 168 24.9 (32.0) 435 302 (30.6)

Total non-interest income 1,456 1,369 1,414 3.2 (2.9) 3,217 2,783 (13.5)

Total income 3,685 3,675 3,837 4.4 4.1 7,550 7,512 (0.5)

Operating expenses * (1,385) (1,305) (1,363) 4.4 (1.6) (2,834) (2,669) (5.8)

PPOP 2,300 2,370 2,474 4.4 7.6 4,716 4,844 2.7

Provisions (810) (1,176) (1,225) 4.2 51.2 (1,750) (2,401) 37.2

Pre-tax profit 1,490 1,194 1,249 4.6 (16.2) 2,966 2,443 (17.6)

Income tax (303) (237) (246) 3.7 (18.9) (588) (483) (17.8)

Net profit 1,159 935 992 6.1 (14.4) 2,313 1,926 (16.7)

EPS (Baht) 1.59 1.17 1.24 3.17 2.41

ROAE (%) 23.5 15.9 16.7 24.1 16.6

4

Assets and Liabilities

81% 86% 85%

359,263332,800 329,483

2013 1Q14 2Q14

Other assets

Interbank & MM

Investments

Loans

89% 88% 88%

336,044

308,599 305,776

2013 1Q14 2Q14

Debentures

Interbank & MM

Deposits & ST

Borrowings

8.3% YTD

Assets Liabilities

1.0% QoQ

Unit: Million Baht 2013 1Q14 2Q14 %QoQ %YTD

Loans – net 292,151 284,655 280,276 (1.5) (4.1)

Allowance (6,354) (6,482) (6,702) 3.4 5.5

Investments 11,490 16,354 17,605 7.6 53.2

Interbank & MM 53,242 29,554 29,445 (0.4) (44.7)

Other assets 8,735 8,718 8,859 1.6 1.4

Total Assets 359,263 332,800 329,483 (1.0) (8.3)


Deposits & ST

Borrowings299,481 270,594 268,546 (0.8) (10.3)

Interbank & MM 16,703 16,419 19,367 18.0 16.0

Debentures 9,243 11,643 7,643 (34.4) (17.3)

Other liabilities 10,617 9,943 10,220 2.8 (3.7)

Total Liabilities 336,044 308,599 305,776 (0.9) (9.0)

Retained earnings 12,392 13,329 12,759 (4.3) 3.0

Total Equity 23,218 24,201 23,707 (2.0) 2.1

Unit: Million Baht Unit: Million Baht

9.0% YTD

0.9% QoQ

51,997 51,354 53,273

2013 1Q14 2Q14

5

Loan Portfolio

205,012 200,298 196,665

2013 1Q14 2Q14

31,21228,987

26,514

2013 1Q14 2Q14

70% 70% 70%

18% 18% 19%

11% 10% 9%

292,151 284,655 280,276

2013 1Q14 2Q14

Other Loans

SME Loans

Corporate Loans

Retail Loans

Corporate LoansRetail Loans SME Loans

Unit: Million Baht Unit: Million Baht Unit: Million Baht

Total Loan Portfolio

Unit: Million Baht1.5% QoQ

4.1% YTD

1.8% QoQ

4.1% YTD

3.7% QoQ

2.5% YTD

8.5% QoQ

15.1% YTD

6

Retail Loan Portfolio

Consumer

Finance, 7.4%

HP New Car,

74.1%

HP Used Car,

16.4%

Others, 0.7%

Motorcycle HP,

1.4%

2Q14

Retail Loan Breakdown

7

Industry Car Sales and Penetration Rate

224143

794

296293328413

1,3311,436

8.6% 8.7%8.4%

11.0%

9.1%8.5% 7.9%7.5% 7.5%

2011 2012 2013 1Q13 2Q13 3Q13 4Q13 1Q14 Apr -

May 14

No. of New Car Sales ('000 Units) Penetration Rate (%)

-

40,000

80,000

120,000

160,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Units

2011

2012

2013

2014

TISCO Auto HP Penetration Rate

Industry New Car Sales

8

Loan Spread and Net Interest Margin

4.8 4.8

3.6

3.1 3.1 3.1 3.0 3.1 3.1 3.03.2

4.44.6

3.5

2.9 2.8 2.8 2.8 2.82.7 2.7

2.9

2009 2010 2011 2012 2013 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14

% Loan Spread

% NIM

7.16.8 6.7 6.7 6.6 6.5 6.5 6.6 6.6 6.5 6.5

4.8 4.8

3.6

3.1 3.1 3.1 3.0 3.1 3.1 3.0 3.22.3

2.0 3.1

3.6 3.5 3.4 3.5 3.5 3.5 3.5 3.3

2009 2010 2011 2012 2013 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14

% Yield on loans

% Loan spread

% Cost of funds

Yield on Loans and Cost of Funds

Remark: Cost of funds include contributions to FIDF and DPA

Loan Spread and Net Interest Margin

9

Asset Quality

NPL by Loan Type2013 1Q14 2Q14

(Million Baht) (%) (Million Baht) (%) (Million Baht) (%)

Corporate 298 0.6 319 0.6 360 0.7

SME 152 0.5 249 0.8 271 1.0

Hire Purchase 4,156 2.2 4,389 2.4 5,228 2.9

Mortgage 69 4.8 78 5.6 75 5.4

Others 291 1.6 330 1.8 431 2.3

Total NPL 4,966 1.7 5,366 1.9 6,366 2.3

NPL and NPL Ratio

2,612 3,099

4,966

3,404 4,069

4,197

4,966 5,366

6,366 1.4% 1.2%1.7%

1.3% 1.5% 1.5% 1.7% 1.9%2.3%

2011 2012 2013 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14

Total NPL % NPLUnit: Million Baht

Provisions

10

2,363

3,105

4,009

3,304 3,620 3,598

4,009 3,859 4,105

4,420

5,122

6,354

5,685 5,913 5,715

6,354 6,482 6,702

2011 2012 2013 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14

Minimum Required Provision Actual Provision

Provision Expense and Credit Cost

1,283

1,922

4,141

940 810 778

1,613

1,176 1,225

0.8% 0.9%

1.5% 1.5%1.2% 1.1%

2.2%

1.6% 1.7%

2011 2012 2013 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14

Provision expense (Million Baht) % Credit cost

Minimum Required Provision vs Actual Provision

Unit: Million Baht

Excess Reserve

= 2,597

Unit: Million Baht

Deposits

299,481

268,546

14% 17% 18%

74%67%

66%

10%

13% 13%

270,594

2013 1Q14 2Q14

LT Bill of Exchanges

ST Debentures

ST Bill of Exchanges

Fixed Deposits

CASA


Current 2,481 3,118 3,055 (2.0) 23.2

Savings 40,751 42,715 46,036 7.8 13.0

Fixed Deposits 221,408 181,778 177,645 (2.3) (19.8)

Short-term Bill of Exchanges 6,275 6,701 7,920 18.2 26.2

Short-term Debentures 28,566 36,282 33,889 (6.6) 18.6

Total Deposits & ST Borrowings 299,481 270,594 268,546 (0.8) (10.3)

Debentures 9,243 11,643 7,643

% LDR to Total Deposits & Bill of Exchanges 97.6 105.2 104.4

11

Total Deposits & Bill of Exchanges

Unit: Million Baht 0.8% QoQ

10.3% YTD

12

Non-Interest Income

2,937 2,719

1,315 1,357 1,362

1H13 1H14 2Q13 1Q14 2Q14

AM, 16.0%

Brokerage, 13.3%

IB, 0.3%

Bancassurance, 47.9%

HP Related, 7.9%

Other Banking, 14.6%

Banking Fee 70.4%


Banking fee* 802 976 938 (3.9) 17.0 1,831 1,914 4.5

Asset Management fee 206 211 225 6.5 9.2 429 436 1.5

Brokerage fee 305 166 196 18.0 (35.8) 668 362 (45.8)

Investment Banking fee 1 4 3 (14.1) 132.2 8 7 (9.0)

Non-interest income from core

businesses1,315 1,357 1,362 0.4 3.6 2,937 2,719 (7.4)

Trading income & Incentive 155 27 56 102.8 (64.2) 327 83 (74.6)

Dividend income 45 34 44 31.1 (1.5) 79 77 (1.8)

Total non-interest income 1,514 1,418 1,462 3.1 (3.5) 3,342 2,880 (13.8)

Unit: Million Baht

Non-Interest Income from Core Businesses Non-Interest Income Breakdown

0.4% QoQ

3.6% YoY

Remark: * Net of income and expense from business promotion relating to HP business

7.4% YoY

13

65% 64% 64%

15% 16% 17%

20% 20% 19%

158,262 157,827 164,844

2013 1Q14 2Q14

Private Fund

Mutual Fund

Provident Fund

102,695 100,586 105,124

13.7% 13.0% 13.1%

2013 1Q14 2Q14

23,754 24,917 27,662

0.8% 0.8% 0.8%

2013 1Q14 2Q14

31,814 32,324 32,058

7.4% 6.6% 7.3%

2013 1Q14 2Q14

Provident Fund Private Fund Mutual Fund

Unit: Million Baht Unit: Million Baht Unit: Million Baht

Asset Management Business

TISCO Asset under Management

Unit: Million Baht

Rank #9

4.4% QoQ

4.2% YTD

4.5% QoQ

2.4% YTD

Rank #3

11.0% QoQ

16.4% YTD

Rank #13

0.8% QoQ

0.8% YTD

Rank #7

*Rankings & Market Share as of May 2014

14

TISCO Trading Volume and Market Share

321,303

408,339

625,096

205,877 182,798 139,846

96,575 96,850 119,921

2.6%

3.1% 3.1% 3.1% 3.2% 3.1%

2.7%3.0% 2.9%

2011 2012 2013 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14

TISCO Volume (Million Baht) Market share (%)

TISCO Trading Volume by Customer

28% 21% 24% 24% 23% 23% 29% 30% 28%

23% 33%35% 29% 38% 41% 32% 34%

27%

49% 46% 41% 47%39% 36% 39% 36%

45%

2011 2012 2013 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14

Retail Investors Foreign Institution Local Institution

Brokerage Business

15

Operating Expenses


Employee’s expenses 946 818 844 3.2 (10.8) 1,943 1,662 (14.4)

Premises & equipment

expenses

224 221 238 7.5 6.5 452 460 1.6

Taxes & duties 55 54 58 6.0 4.7 104 112 7.5

Other expenses * 160 212 223 5.3 39.3 334 435 30.1

Total 1,385 1,305 1,363 4.4 (1.6) 2,834 2,669 (5.8)

Cost to Income Ratio

37.4% 36.9%41.1%

37.1%

42.2%

37.5% 35.5% 37.6% 35.5% 35.5%

1H13 1H14 2Q13 1Q14 2Q14

Cost-to-income Cost-to-income net *

Cost to Total Assets Ratio

2.1%1.7%

2.0%1.7% 1.8%1.7% 1.6% 1.7% 1.6% 1.7%

1H13 1H14 2Q13 1Q14 2Q14

Cost to total assets Cost to total assets - net *

Remark: * Excluded expense from business promotion relating to HP business

Listed Equity2.3%

Non-Listed Equity1.3%

Banking Book(Interest

Bearing)0.0%

Fixed-income0.4%

Derivatives0.1%

Property0.1%

FX0.5%

Wholesale Lending14.5%

Retail Lending60.6%

SME Lending3.2%

Operational Risk Reserve17.2%

16

Capital Adequacy

18,493

22,006

25,746

22,819 24,712

25,612 25,746 27,170

28,829

14.9%13.3% 13.4% 12.9% 13.3% 13.8% 13.4%

14.3%15.4%

9.9%9.0% 9.2%

8.3%9.0% 9.5% 9.2% 9.4%

11.5%

2011 2012 2013 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14*

Capital Base (MB)

BIS Ratio (%)

Tier I (%)

Capital Adequacy Ratio of TISCO Bank

Risk-Based Capital Exposure

1Q14 2Q14

* Remark : Projected figure

Listed Equity1.1%

Non-Listed Equity1.1%

Banking Book(Interest

Bearing)0.0%

Fixed-income0.2%

Derivatives0.2%

Property0.1%

FX0.4%

Wholesale Lending15.0%

Retail Lending60.2%

SME Lending3.0%

Operational Risk Reserve18.8%

Employee and Branch Network

57

87

132137

142

2011 2012 2013 1Q14 2Q14

Total Branch Network

17

Disclaimer

This presentation material may contain forward-looking statements. These forward-looking

statements are not guarantees of future performance and involve risks and uncertainties, and

actual results may differ from those in the forward looking statements as a result of various

factors. TISCO accepts no liability whatsoever with respect to the use of this document of its

content.

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TISCO Financial Group Public Company Limited

48/49 TISCO Tower, North Sathorn Road

Silom, Bangrak, Bangkok 10500

Thailand

Tel: +66-2-633-6868

Fax: +66-2-633-6855

Email: [email protected]

Website: www.tisco.co.th

Investor Relations

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